Whose agent has the contract, if it's your agent, you don't have an exercised agreement yet and you can cancel but you'll likely still have to compensate your agent.

@Robert Herrera, my instinct would be to tell your "tenant buyer" to either exercise their buy option at $57k - or not.

Once you secure the property you can start to add value and exercise your option to purchase it once you have the financing for it. 

In my opinion, I would treat this as an academic exercise. 

Give them 24 months or so to exercise and buy when they're ready. 

Does this exercise makes sense, if I want to sell the property individually?

Design your option to be exercised after this happens.These same owners are also a great source to ask for seller financing after they see how you manage the property for a couple of years.Happy InvestingDerek Dombeck

The IRA would exercise the option when you sell or refinance, making a potentially nice return.Happy InvestingDerek Dombeck

DR and Lennar basically will only buy ready to build lots.. so I have a few larger projects in the works.. 92 lots and 164 lots.. that they swear ( pinky Swear) they will buy from me when I get them shovel ready.. 7 to 10 million dollar risk and they could say no if they don't like what the market is doing.. the 92 I am going to do if they don't buy it I will build it.. the 164 I have to flip or I will not exercise my option at walk away from about 250k in cash I Have in it presently.. but that's the land game .. big risk big reward.. if the 164 goes right I will make about 4 million on  the same 250k invested.. roll the dice right ???  

At closing with your new buyer, The IRA exercises the option simultaneously, thereby giving them 20% of the equity.